Filing and paying employer's contributions ‒ detailed guidance, 2018

This guidance is for the 2018 filing year (or for years before 2018 if applicable).

You must file your reports on employer contributions electronically, in MyTax, for example. Paper forms can only be used if you do not have access to e-filing.

  • If employers’ contributions are the only type of tax that you file, either electronically or on paper, follow the 2018 instructions.
  • When you have both employers’ contributions and VAT and you file on paper, you can use one single paper form for both. For VAT filing, please read the guidance for 2019.
  • The instructions on how to file employer contributions to the Tax Administration are given in this guidance – for VAT filing, read the 2019 VAT instructions.
  • If you file on paper and you only need to file VAT, use the 2019 forms and instructions.
  • If you file other self-assessed taxes, (such as the amounts you have withheld when paying out dividends), use the appropriate forms and instructions for the relevant year of withholding and payment.

Reporting wages paid in 2019?

 

The reporting routine for wages has changed – you must now file them to the Incomes Register.

Further information about the change.

You must file the following information to the Incomes Register and you are no longer required to complete self-assessed tax returns for it:

  • Paid wages and the employer’s health insurance contributions
  • Withholding on payments made to a limited company, cooperative or other corporation 
  • Tax withheld at source on any royalties you have paid out

During 2019, paid-out pensions and social benefits are still to be included in the self-assessed tax return.

Table of contents

Detailed instructions
Shared information content for filing self-assessed taxes
Employer's contributions
Payroll is seasonal, no wage payments for a time
Special groups of taxpayers  (for example, sub-accounting units, account operators, tax recipients)
Filing and paying other self-assessed taxes
Businesses and other employers that must file employer's contributions (payroll withholding, health insurance, tax at source)
How to pay self-assessed tax return
Making corrections to submitted returns
The Tax Administration imposes late-filing penalties for overdue returns

Detailed instructions

Shared information content for filing self-assessed taxes

Taxpayer’s name

Registered business or association: fill in the name entered in the Trade Register or the Register of Associations.
Other taxpayers: fill in the full name.

Business ID or personal identity code

This entry is required. Fill in your personal identity code only in case you have no Business ID. This code is needed for matching the submitted information with the taxpayer concerned.

Date and signature

Returns must be dated and signed. In e-filing, electronic identification replaces the signature.

Telephone

Fill in the telephone number of a contact person giving additional information if necessary.

Tax period

Indicate the reported tax period by its number:

  • If your filing period is the calendar month, enter a number (1-12). Example: For filing taxes for March, enter '3'.
  • If your filing period is the quarter, enter 1, 2, 3 or 4. Example: For filing taxes for the 2nd quarter, enter '2' (from April to end of June).
  • If your period is the year, leave this field blank.

Year

Indicate the year of the tax period, fill in all the four digits.

Employer's contributions

Wages and other payments subject to withholding

Enter the following payments subject to withholding, made to beneficiaries during the tax period:

  • Wages, fees, salaries, social benefits, reimbursement paid to an individual in an employer/employee relationship (§ 13, act on tax prepayments (Ennakkoperintälaki 1118/1996))
  • Fees for attending a conference, for giving lectures or speeches, for being a member of a board of directors or other similar councils, for work as a Managing Director, amounts paid to a partner of a partnership company, and amts paid in compensation for acting in a position of trust (luottamustoimi in Finnish, förtroendeuppdrag in Swedish) (§ 13, act on tax prepayments).
  • Seafarer’s income
  • Pensions, social benefits, insurance indemnity payments, etc. (this also includes pensions paid to nonresident individual taxpayers)
  • Nonwage compensation (=trade income), royalties (§ 25, act on prepayments)
  • Wages and fees paid to a sportsman, payments from a special fund

Enter all the payments listed above regardless of whether the employer's health insurance contribution is being paid on them or not.

  • If all payments under "Wages and other compensation subject to withholding" are exempted from the contribution, enter zeroes in the "Wages subject to the employer's health insurance contribution" and "Health insurance contribution payable".

This field also intended for reporting any wages subject to withholding that an employer has paid to a nonresident beneficiary, and the wages (and other payments) must be reported annually on Form 7809e, the annual information return on payments made to nonresidents; use Codes AR, R2, R5, R6, RM and RE.

Annual information return on payments to nonresidents (7809e)

Enter the wages even in the following cases where no withholding is carried out because:

  • The paid-out wages are low
  • No cash payment – fringe benefits are provided instead
  • The beneficiary’s tax card indicates a zero rate of withholding.

If you are a household employer and haven't paid out more wages than €1,500 per calendar year and no withholding has been involved, you do not have to file a Self-Assessed Tax Return. However, if there has been any withholding, you must report it. When the wages paid out are above €200, you must file an employer payroll report (annual information).

Read more:

Guidance for household employers
Filing and paying employer contributions ‒ households

Amounts treated as wages

For tax purposes, the following compensation is treated as wages:

  • Amounts reflecting the taxable values of fringe benefits, such as company car, accommodation, meals, and other non-cash benefits.
  • Any amounts higher than the tax-exempt limits of allowances for travel expenses – if the employer has paid out higher amounts than defined in the Official Decision of the Finnish Tax Administration on allowances for travel, the amount exceeding the limit is regarded as taxable wages. 
    See conditions of tax-exempt allowance (The 2018 Official Decision on Allowances for Travel Expenses)
  • Wages paid to employees during sick leave, even if compensation from Kela or an insurance company has been received for them.
  • Tips received by employees during their employment.
  • Employer-paid pension insurance premiums regarded as wages.
  • Additional daily sick-leave allowances financed by a sick-leave fund.
  • Annual wage equivalent for purposes of social insurance (=”vakuutuspalkka”) when applying the 6-month rule. If no such equivalent has been agreed on, fill in the actual cash wages.
  • Benefits arising from employee stock options or employee loans.
  • Fees paid for giving lectures, not based on an employer/employee relationship, fees for attending meetings, fees for giving lectures and speeches, fees for membership in a board of directors, regardless of whether pension insurance premiums are paid or not.
  • Severance pay in connection with termination of employment, other comparable indemnity amounts.
  • Amounts reflecting profit sharing, within the meaning of the act governing employee-stockholders' funds (henkilöstörahastolaki 814/1989), paid to employees in cash.

Compensation not treated as wages

  • Paid allowance for travel expenses that are treated as exempt from taxation if they were paid to the wage earner in accordance with the Decision of the Tax Administration on tax-exempt allowances for business travel.
  • Paid reimbursement of out-of-pocket expenses if they were paid to the wage earner in such a way that no obligation for withholding arises (such as reimbursement for private telephone and tools).
  • Arrangements and paid expenses for fringe benefits, if you provided them collectively to everyone who works for you (§ 67 and § 69, act on income taxation).
  • Wage earner-paid expenses that are directly connected to their work (such as their tax-deductible expenses for the use of a private chainsaw) and are accounted for before you withheld tax on their wages.
  • Paid expense allowance, treated as exempt from taxation, paid to a foster care provider.

Read more: Tax treatment of wages and trade income (only in Finnish, Palkka ja työkorvaus verotuksessa)

Trade income and copyright royalty income

You must withhold tax on any payments going to a natural person or to a partnership (including limited and general partnerships) that are not on the Prepayment Register. Use this field to fill in this kind of trade income and copyright royalty income you have paid. Enter the gross amounts without deducting any VAT or paid reimbursement for the beneficiaries’ commuting/travel expenses.

In the same way, you must withhold tax on the amounts you pay to a limited company, cooperative or other corporate entity as trade income or royalties unless the beneficiary is on the Prepayment Register.
If you file on paper, fill in the taxes you withheld under “Information on other self-assessed taxes”. To identify the tax, enter code 25.

If you paid out dividends, you must not include them in “Wages and other payments subject to withholding”. The only field where you should report the tax you have withheld on paid-out dividends is “Other self-assessed taxes”, using code 92.

For more information, see Filing and paying other self-assessed taxes.

Tax withheld (on wages and other payments)

Enter the amounts you have withheld on:

  • Wages and salaries when paying them out.
  • Trade income i.e. nonwage compensation or royalties (compensation for use); if paid to physical persons, general partnerships, limited partnerships or other consortia.
  • Pensions (including pensions paid to non-resident taxpayers), annuities, social benefits strike allowances etc. when paid out.
  • Wages or fees paid to athletes, including the withholding on payments taken from a special fund, paid to nonresident beneficiaries, and also reported in "Wages and other payments subject to withholding".

Note: if you file on paper, enter any withholding on payments of dividends in 'Other self-assessed taxes', using code 92.

Read more: More information on withholding (only in Finnish, Ennakonpidätyksen toimittaminen)

Wages and other payments subject to tax at source

Enter the total of wages and other payments subject to tax at source paid to nonresident taxpayers during the tax period. Enter the gross amount, do not deduct the amount referred to in section 6 of the act on the taxation of non-residents’ income and capital.

Examples:

  • Wages subject to tax at source (for more information, see allowances for paid expenses).
  • Wages paid by a public corporate body.
  • Compensation paid to a public entertainer, artiste or athlete for personal services performed (taxable at the 15%-rate, or if a tax card has been issued – at a lower rate as appropriate).
  • Wages paid by foreign subsidiaries (or similar associated entities) to a nonresident employee working in another country, if the employee has Finnish social insurance coverage.
  • The benefit that arises from employee stock options and stock grants, if based on work performed in Finland.
  • Nonwage compensation, i.e. "trade income" (if paid to a corporate entity, it does not have to be reported unless you withheld tax at source on it).
  • Payments subject to withholding, made to nonresidents, when these payments are not reported in "Wages and other payments subject to withholding".

In addition, the wages or salary (€5,800 or higher) paid to key employees (to Finnish tax residents, too) (For more information, see the act on tax withholding on the compensation paid to foreign beneficiaries (only in Finnish, laki ulkomailta tulevan palkansaajan lähdeverosta 1551/1995).

  • If a Finnish company pays wages to a nonresident who works in a foreign country, and who is not covered by social insurance in Finland, do not report it on the return. However, the Finnish company (=you) must file an employer payroll report in the usual way.

Who is a nonresident taxpayer?

The following are non-residents:

  • A foreign citizen staying in Finland for no longer than six months.
  • A Finnish citizen who lives in a foreign country may become a nonresident after three full calendar years after the year of leaving Finland, or when he or she no longer has any substantial ties with Finland.

Payments of coverage for out-of-pocket expenses to nonresidents

If an individual's primary place of work is in a foreign country, and this individual is staying in Finland temporarily (e.g. lecturers and specialists), paid wages subject to tax at source do not have to include their allowances or reimbursement for travel, exempt from income tax under the act on income taxation, and in the case of seafarers, the tax-exempt allowance paid to seafarers. For more information, see the list under the sub-heading “Compensation not treated as wages”.

You must valuate the fringe benefits included in the wages you pay as instructed by the provisions of the act on income taxation.

However, if an individual who is a nonresident works in Finland full time, in a retail store, office, or a factory etc., this place becomes his or her primary place of work. In this case, you can pay no tax-exempt reimbursement to him or her.

If during the period, you only paid amounts subject to withholding of tax at source and nothing subject to ordinary withholding of taxes and contributions, you must enter zeroes in:

  • “Wages and other payments subject to withholding”, and
  • the health-insurance-contribution-related fields “Wages subject to employer's health insurance contributions” and “Employer's health insurance contribution payable”. 

Tax at source on wages, etc.

Enter the following amounts:

  • The tax-at-source, withheld on wages and nonwage compensation i.e. trade income, including amounts withheld on any payments of trade income to a foreign corporate entity.
  • The health insurance contributions of the insured person (health insurance contribution and daily allowance contribution).
  • The tax-at-source withheld on fees or wages paid to a public entertainer, artiste or athlete for the performance of personal services.
  • The tax-at-source withheld from key-employee salary.

Also, enter any taxes withheld on payments, subject to withholding, made to nonresidents and entered in "Wages and other payments subject to tax at source".

To calculate the tax at source, the basis is the gross amount minus deductions, pursuant to section 6 of the act on the taxation of nonresidents' income, (€510 per month or €17 per day).

If you file on paper, the tax-at-source you withheld on payments of interest and royalties requires reporting under code 69 in “Other self-assessed taxes”. Likewise, the tax-at-source on any dividends you pay requires reporting under code 39; on interest, under code 84.

Read more: Filing and paying other self-assessed taxes.

Wages subject to the employer's health insurance contribution

Enter the wages and other payments you paid out during the tax period and on which you must pay health insurance, including:

  • The wages, salaries, fees and compensation listed in § 13, Prepayment Act; excluding those referred to in the Act governing health insurance – see the list under the sub-heading Compensation not treated as wages.
  • Additional sickness allowance paid by a sickness insurance fund within the meaning of the act governing insurance offices.
  • Tip income, received by employees during their employment.
  • The basis wages for insurance premiums for an employee working in a foreign country if the six-month rule is applied, or instead of the wages for insurance purposes, the wages subject to withholding, paid to such an employee, if no agreement on a basis for insurance premiums is made.
  • Wages paid to a nonresident who is covered by the Finnish social security system (see “Wages and other payments subject to tax at source”).
  • The monthly pay of a key employee amounting to at least €5,800 (for more information, see the act on tax withholding on the compensation paid to foreign beneficiaries (only in Finnish, laki ulkomailta tulevan palkansaajan lähdeverosta 1551/1995)).
  • Compensation paid to a nonresident artiste for their personal endeavour
  • Seafarer’s income
  • Amounts paid as “pay security – palkkaturva"
  • Payments transferred to a special sportsmen's fund

Enter the wages even if no withholding is carried out. Reasons for no withholding include the following: the amount of pay is low, the pay is only given to the worker in the form of fringe benefits, the worker’s tax card specifies a zero rate of withholding. Employer's health contribution must also be paid in circumstances where no withholding is carried out.

Amounts for which the health insurance contribution is payable:

For tax purposes, the following compensation is treated as wages, and you must include it:

  • Amounts reflecting the taxable values of fringe benefits, such as company car, accommodation, meals, and other non-cash benefits.
  • Any amounts higher than the tax-exempt upper limits of allowances for travel expenses (if you paid out higher amounts than defined in the Tax Administration’s Decision on tax-exempt allowances for business travel or paid out the allowance amounts on less strict grounds, the part of the amounts considered subject to tax must be entered as wages paid to the worker).
  • Wages paid to workers during sick leave, even if you had received compensation from Kela or an insurance company for them.
  • Tip income, received by employees during their employment.
  • Employer-paid pension insurance premiums, regarded as wages.

Payments exempted from the health insurance contribution

If the wages and other payments do not give rise to the contribution, enter zeroes in “Wages subject to the employer's health insurance contribution” and “Employer's health insurance contribution payable”.

Amounts for which a health insurance contribution is not payable:

  • Wages you paid to workers younger than 16 or to workers who had turned 68. The calendar month of the sixteenth birthday is the last month when these wages are not included, and correspondingly, the calendar month of the 68th birthday is the last month when they are included.
  • Amounts listed in Act on Sickness Insurance Chapter 11, Section 2.4 including collective employer-provided fringe benefits given to the all the workers on your payroll, even if this benefit were taxable as a fringe benefit.
  • Benefits arising from employee stock options or employee loans.
  • Benefits arising from other rights to buy stock or similar securities for a reduced price on the basis of employment.
  • Wages payable for waiting time (§ 14.1, Employment Act).
  • Severance pay in connection with termination of employment, other comparable indemnity amounts.
  • Fees paid for giving lectures, not based on employer /employee relationships, fees for attending meetings, fees for giving lectures and speeches, fees for membership in the board of directors, if the law governing pension insurance does not prescribe that pension premiums are payable in the case.
  • Amounts reflecting profit sharing, within the meaning of the act governing employee-stockholders' funds (814/1989), paid to employees in cash.
  • Amounts excluded from your worker's wages before you carry out payroll withholding (e.g. exclusion for chain-saw costs), thus not subject to withholding.
  • Paid allowances for travel expenses that are treated as exempt from taxation because you paid them to worker within the max. limits set out by the Decision of the Tax Administration on tax-exempt allowances for business travel.
  • Wages paid by a substitute payer.

Nonresident workers who are covered by Finnish social insurance

The employer must pay the health insurance contribution and collect the insured party’s health insurance premium from the worker. A nonresident is covered by the Finnish social insurance system if he or she works on board a Finnish ship, or arrives in Finland to work for at least four months, and is not a holder of the A1 Certificate or similar documents issued by home-country social authorities.

The employer does not have to pay the contribution and the insured party’s health insurance if the sum of wages paid to the nonresident does not reach €1,173 per month (year 2017) or if the working hours are below 18 hours a week. For checking the 2018 values, you can click “How to calculate the health insurance contribution” (only in Finnish, Työnantajan sairausvakuutusmaksun ja vakuutetun sairausvakuutusmaksun määräytyminen ja verotus.

Even if the employee's place of work is not located in Finland, coverage by the Finnish social insurance system may exist on the basis of the following:

  • The employee belongs to the aircrew of a Finnish airline company.
  • The employee lives in the EEA or Switzerland and is employed by a Finnish freight company and is a member of the freight fleet crew or personnel.

For more information (in Finnish/Swedish), click Työnantajan sairausvakuutusmaksun ja vakuutetun sairausvakuutusmaksun määräytyminen ja verotus.

Health insurance contribution payable

The employer's health insurance contribution, net of adjustments.

  • The base for this contribution is the payroll total entered in the previous field. Multiply the total by the percentage rate. 
    Rates in force for 2018 (Employer's contributions to be reported and paid to the Tax Administration)
  • If Kela or an insurance company has paid you reimbursement for maternity allowance or similar daily allowances for people on leave, you must adjust the contribution. To work out the adjustment amount, multiply the allowance by the rate of the contribution that you had used in the tax period when you paid the wages.

Submitting an excessive amount

Employers are entitled to compensation from Kela if they have paid wages but the worker receives Kela-paid daily allowance. In this case, the Tax Administration can pay back the health insurance contributions to you if you received the compensation described above. If you reported a contribution amount that turns out to be too high because of the compensation, you must correct it by filing a replacement return for the same tax period.

File your replacement return for the tax period where the error was found. If the amount is low, you can implement the simplified method of making corrections. Another option to make a correction to a paid-in health insurance contribution is as follows: Subtract the excessive amount from the next health insurance contribution you are expected to pay during the calendar year.

Employers can do this independently after they have received the letter confirming the exact amount of a social benefit, of a compensation, etc. Refunds of health insurance contributions are paid to employers in connection with a coverage being paid to them by Kela, because their employees have received per diems, pensions and other benefits. For example, if an employer has paid wages to a worker who is on maternity leave, they can wait until Kela sends them a letter confirming the amount of the maternity benefit and then subtract the excessive part of the paid-in health insurance contributions accordingly.

Illustration: In August 2016, the employer had paid wages to a worker, and the employer also paid the health insurance contribution on this. The employer received money in February 2017 based on its payments of wages in August 2016, for which the worker was paid social allowances. Under the circumstances, the employer had paid too much in health insurance contributions. To make corrections to information filed for tax periods prior to 1 January 2017, filers are simply allowed to just change the entries for the final tax period of the calendar year. The employer can now file a replacement return for December 2016 with a complete set of employer's contribution amounts. The employer payroll report filed for 2016 must be corrected, too.

Illustration: The employer received money in February 2018 as a coverage for their payments of wages in May 2017, for which the worker was paid social allowances. Under the circumstances, the employer had paid too much in health insurance contributions. The employer can now file a replacement return for May 2017 with a complete set of employer's contribution amounts. The employer payroll report filed for 2017 must be corrected, too.

Errors in reporting the employer's health insurance contributions

If you made an error in your filing, you must put it right. For more information, see Making corrections to submitted returns An example of an error on the tax return would be that you have entered €70.00 instead of €700.00 in the health insurance contribution field.

Section 9 of the act on health insurance contributions

Section 25 of the act on assessment procedure for self-assessed taxes (Laki oma-aloitteisten verojen verotusmenettelystä 768/2016)

Payroll is seasonal, no wage payments for a time

If you are registered as an employer paying wages regularly, you must submit Self-assessed tax returns for each tax period.

If you paid no wages during a tax period and you file on paper, enter zeroes in the following fields of the paper form: “Amount withheld”, “Tax at source on wages, etc.” and “The employer's health insurance contribution”.

If you file in MyTax, you must submit your “Not active” report specifically for each tax period. The way to do this in MyTax is to select “No Activity/wage payments” specifically for each tax period.

You do not have to submit a return for reported interruption periods unless you have paid wages.

If your company no longer pays wages or has gone out of business, you should file a Notification on termination of business (available at www.ytj.fi). However, you must file your return for employer's contributions for the final tax period when you still are registered as an employer paying wages regularly.

Special groups of taxpayers

Accounting units

Large employers with several business locations may have a number of sub-accounting units entered in the Tax Administration’s registers. These units must use their own Identity Codes when filing their tax returns for employer's contributions. However, their VAT and other self-assessed taxes are reported with the main-company Business ID codes only. The Tax Administration only uses the main-company account when entering the payments reported by sub-accounting units.

Shipping company paying wages treated as seafarer's income

There is no requirement to file a return for seafarer's wages or fees. Instead, similarly as for other payrolls, you must file and pay the withholding, taxes at source, and employer's health insurance contributions by the 12th of the second month after the end of the calendar month. Returns must be filed electronically, in MyTax, or via other e-Services. MyTax also has an interface allowing users to make payments.

Account operators as filers

Account operators (such as banks taking care of dividend payments of a listed company) are entitled to submit self-assessed tax returns on behalf of their clients in connection with the following taxes:

  • 68 Amounts withheld on interest and profit-shares paid out
  • 92 Amounts withheld on dividends and cooperative surplus
  • 39 Tax withheld at source on dividends and cooperative surplus (paid to nonresidents)
  • 69 Tax withheld at source on interest and royalties (nonresidents)
  • 84 Tax withheld at source on interest income (residents)

The actual payers (e.g. listed companies paying dividends) must give a Letter of Authorisation in order to officially give permission to the account operator for tax-return filing. In such arrangements, the account operator’s Business ID is included in each submitted return.

Filing and paying other self-assessed taxes

Tax type code

The codes are:

10 = Lottery tax
16 = Tax on insurance premiums
24 = Amount withheld from the purchase price for timber: the buyer
25 = Withholding on payments made to a limited company, cooperative or other corporation
68 = Amounts withheld on interest and profit-shares paid out
92 = Withholding on dividends and cooperative surplus
39 = Tax withheld at source on dividends and cooperative surplus (paid to nonresidents)
69 = Tax at source on interest and royalties (nonresidents)
84 = Tax at source on interest income (residents)
(40 = Pharmacy tax, must be filed electronically.)

10 Lottery tax

The tax period is always the month.

Due date for filing and payment is the 12th of the second month following the event for competitions, games and other events where either consumer goods or other benefits, including cash, are given out as prizes.

This way, for an event organised in January, the due date for filing and payment would be 12 March.

Lottery tax is payable to the State of Finland for events organised in Finland. The party accountable for paying the tax is the operator or organiser of the lottery. If several bodies or persons share the work relating to the operation or organisation, each one of them is accountable and each one of them bears responsibility for the entire amount.

The concept of 'lottery' (Finnish: arpajaiset; Swedish: lotteri) refers to:

  • Cash competitions or sweepstakes; non-money lotteries where consumer goods are given out as prizes; guessing games; bingo games;
  • 1x2 betting related to football; other betting and horse races;
  • Operation of slot machines that may give cash or consumer goods as prizes;
  • Operation of gambling games in a casino establishment

For more information on the concept of lottery, see provisions of the act on tax on lottery prizes (arpajaisverolaki 552/1992).

The act also applies to temporary, one-time public competitions or sweepstakes, guessing games, betting, and other comparable events where random results will determine who will win money in cash or in the form of noncash benefits. Nevertheless, a prize is taxable under other tax laws if it is an amount of money, paid in exchange for goods or services, or if it is paid as wages.

Read more: Tax on lottery prizes (only in Finnish, Arpajaisten verotus)

16 Tax on insurance premiums

The tax period is always the month.

File and pay the insurance-premium tax by the 12th of the month after the end of the calendar month (in other words, if a payment relates to June, file and pay it by 12 July).

Parties liable to this tax are the insurance companies that operate an insurance business in Finland. In some circumstances, the policyholder (a private individual, or a company) may be liable to pay the tax. This may occur when the insurance premium is paid to an insurer that does not conduct insurance business in Finland.

The rate of insurance premium tax is 24%. Its base is the accumulated or paid-in insurance premiums (sections 3 and 4 of the act on the tax on insurance premiums (Vakuutusmaksuverolaki 664/1966). In fire insurance, the fire protection fee of 3% is also considered when the basis for the tax is determined.

Read more: Guidance on tax on insurance premiums

24 Amount withheld from the purchase price for timber

The tax period is usually the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File the information on the withholding and pay it by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

Buyers of timber are normally expected to withhold tax on the payments they make to forest owners. Note: Note: this must also be done if the forest owner is someone who lives in a foreign country permanently and is a nonresident.

No withholding is necessary if:

  • The entire proceeds for the timber stay below €100 (if the sellers are two spouses, the 100-euro limit is applied separately for each one of them)
  • The seller that owns the forest is a corporate entity or a benefit under joint administration
  • The wood being bought is a more refined product, not timber

If the buyer is an individual or an estate of a deceased individual, they do not have to withhold tax on amounts paid to the sellers of timber unless any of the following is true:

  • The buyer has bought timber from one seller for more than €10,000 during the calendar year 
  • The buying has to do with the buyer’s business operation

If a forestry association is acting as an intermediary when several owners are selling, the party liable to withhold, file and pay the tax is the association, not the buyer of timber. However, if the buyer of timber pays the purchase prices directly into the bank accounts of the sellers, the party liable to withhold, file and pay the tax is still the buyer although an association has acted as an intermediary.

If you are a buyer, you must also file an information return on the timber and the amounts you paid for it after the year is over. You must do so by the end of January after the end of the year of withholding.

Read more: Liability to withhold tax on purchases of timber (only in Finnish, Puun ostajan velvollisuudet)

25 Withholding on payments made to a limited company, cooperative or other corporation

For this sub-type, the tax period is normally the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File and pay the amount withheld by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

You must withhold tax on any trade income (=nonwage compensation) or royalties you pay to a limited company, cooperative or other corporation, and pay the withheld amounts on to the tax office unless the limited company, cooperative or other corporation is on the Prepayment Register.

Note: Report any payments going to a natural person or partnership (limited or general partnership) who is not on the Prepayment Register under ”Wages and other payments subject to withholding” and enter the withholding in ”Tax withheld”. You must do this unless the beneficiary is on the Prepayment Register.

You also must file an annual information return in order to report the payments and the taxes withheld on them. You must do so once a year, by the end of January after the end of the year of withholding.

Read more:
More information on withholding (only in Finnish, Ennakonpidätyksen toimittaminen)
How to report annual information

68 Amounts withheld on interest and profit-shares paid out

This sub-type concerns the withholding on payments of interest, profit share, and aftermarket bonus, etc., you make to a natural person.

The tax period is usually the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File the information on the withholding and pay it by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

Code 69 is only for the withholding on payments of interest and profit-shares to a resident of Finland. If you paid a nonresident and withheld tax, specify code 69.

You must also file an annual information return in order to report the amounts withheld. You must do so once a year, by the end of January after the end of the year of withholding.

Read more:
More information on withholding (only in Finnish, Ennakonpidätyksen toimittaminen)
How to report annual information

92 Amounts withheld on dividends and cooperative surplus

The tax period is usually the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File the information on the withholding and pay it by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

If you make a payment of dividends of listed and non-listed companies to an individual or to an estate of a deceased person, as defined in § 33 a and § 33 b, act on income taxation, you must withhold tax on the amount that you pay out. In the same way, if you pay out profit surplus of a cooperative, listed or non-listed, to an individual or to an estate of a deceased person, as defined in § 33 e, act on income taxation, you must withhold tax.

  • Report the withholding on dividends and profit surplus on the return for the period that coincides with the date when the dividends/surplus first became available for payment to the shareholders. Only enter the withholding, not the gross amount of the entire dividends or surplus.

You must also file an annual information return to the Tax Administration by the end of January the next calendar year.

Read more:
For more information, see the guidance on withholding on paid-out dividends (only in Finnish, “Ennakonpidätys osingosta ja Verohallinnolle annettavat ilmoitukset”)
More information on withholding (only in Finnish, Ennakonpidätyksen toimittaminen)
How to report annual information

39 Tax withheld at source on dividends and cooperative surplus (paid to nonresidents)
and 69 Tax withheld at source on interest and royalties (paid to nonresidents)

The tax period for this sub-type is normally the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File and pay the tax at source by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

Foreign corporate entities and citizens of foreign countries living outside Finland are treated as nonresidents, i.e. as having a limited tax liability. If they are beneficiaries of dividends, interest or royalties from a Finnish payor, it is required that a tax is withheld at source (as a final tax).

  • Report the withholding on dividends (39) on the return for the period that coincides with the date when the dividends first became available for payment to the shareholders. Only enter the withholding, not the gross amount of the entire dividends.

The code to use is '39' also in the case of withholding on a payment of surplus to a nonresident by a cooperative society.

In the same way, use the '39' code also for reporting the tax at source withheld on distributions of money to the shareholders from a fund consisting of unrestricted corporate equity.

Note: If you withheld tax at source on wage payments or the like, enter it in the "Tax at source on wages etc." field on the self-assessed tax return.

If you made payments subject to tax at source, you must also report them on an information return after the year is over. Submit it by the end of January after the end of the year when you withheld the tax at source.

If you have paid a nonresident for a delivery of timber, you must not withheld tax-at-source. Instead, you must carry out an ordinary withholding. In this case, use the '24' code (Amount withheld on the purchase price of timber).

84 Tax withheld at source on interest income (paid to Finnish residents)

For this sub-type, the tax period is usually the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

File and pay the tax at source by:

  • The 12th of the month after the tax period if you file monthly
  • The 12th of the second month after the tax period if you file quarterly. In other words, if you are filing the return for the first quarter (January to March), file it by 12 May.

Payments of interest subject to tax at source are those paid to tax-resident individuals in Finland – i. e. natural persons fully liable to tax – or estates of deceased persons in Finland:

  • Interest paid on bank deposits by financial institutions and cooperative savings banks, to accounts opened for the purpose of collecting deposits from the public
  • Interest paid on the amounts deposited in personnel service offices (=employees' banks)

If you have paid out interest of this type, you must also report it on an Information Return after the year is over. Submit the annual information by February 15 of the year after the year when you withheld tax at source.

Read more:
More information on withholding (only in Finnish, Ennakonpidätyksen toimittaminen)
How to report annual information

Tax period

Indicate the reported tax period by its number:

The tax period is usually the month. You can only file by the quarter if the Tax Administration has granted you an extended tax period.

  • If your tax period is the month, enter a number (1–12). Example: For filing taxes for March, enter '3'.
  • If your filing period is the quarter, enter 1, 2, 3 or 4. Example: For filing taxes for the 2nd quarter, enter '2' (from April to end of June).

Note: You must always apply the monthly tax period on the filing of insurance-premium and lottery taxes.

Year

Indicate the year of the tax period, fill in all the four digits.

Tax payable

Enter the amount due for the tax period.

No activity subject to Tax on Insurance Premiums

If your insurance business is seasonal or interrupted for several months, you can report a no-activity period. To report such breaks in advance, use the self-assessed tax return. If no activity took place during the tax period, enter zero in "Tax payable".

If you file in MyTax, you must submit such a report specifically for each tax period. When completing the return in MyTax, select “No activities during the tax period”.

The maximum length of filing such a “zero return” is six months in advance. You do not have to file returns for reported interruptions, unless you in fact have conducted some insurance business.

If your company no longer carries out an insurance business, you should file a Notification on termination of business (available at www.ytj.fi). However, you must also file your self-assessed tax return for your final period as a business liable to tax on insurance premiums. 

Businesses and other employers that must file employer's contributions (payroll withholding, health insurance, tax at source)

Payroll withholding, the employer's health insurance contribution, and taxes at source are regarded as “employer contributions”. The reporting requirement for 2018 and prior years concerns businesses, companies, and others that fall into the following categories:

  • Employers paying wages on a regular basis
  • Casual employers
  • Payors of pension
  • Shipping companies paying wages treated as seafarer's income
  • Sub-accounting units (because large employers with several business locations may have a number of sub-accounting units entered in the Tax Administration’s registers)

List of other self-assessed taxes and information on who must file and pay them:

  • Lottery tax: the party in charge of the event.
  • Insurance premium tax: parties in the insurance industry, liable to pay this tax.
  • Amount withheld from the purchase price for timber: the buyer.
  • Amounts withheld on payments made to a limited company, cooperative or other corporation: the payor of compensation, royalties.
  • Amounts withheld from interest and shares: the party paying the interest etc., liable to withhold tax on the payments under the act on income tax.
  • Amounts withheld on dividends and cooperative surplus: the payor.
  • Tax withheld at source on dividends and cooperative surplus paid to a nonresident: the payor.
  • Tax withheld at source on interest income and royalties paid to a nonresident: the payor.
  • Tax withheld at source on payments of interest income to a resident taxpayer: the payor.
  • Pharmacy tax: the party legally defined as liable to this tax (e-filing only).
    Read more about Pharmacy Tax.

How to pay self-assessed taxes

Read more about filing and paying self-assessed taxes 


Making corrections to submitted returns

If you detect an error or omission, you are expected to put it right without delay. It is expected that any inaccuracies are corrected, although no change would ensue to amounts of taxes.

The way to make corrections is by filing a replacement return for the tax period where the error occurred.

The making of corrections is the same, regardless of the fact that some corrections lead to an increase of the amount of tax, and others lead to a decrease. In other words, from the perspective of making corrections, it is not important whether your original return contained too much tax to pay – or too much refunds to receive.

The replacement erases and revises the amounts for a certain tax (such as VAT). For this reason, it is required that you re-submit both the amounts that were inaccurate and those that were accurate, as well. All kinds of employer contributions are treated as representing just one single sub-type of taxes. For this reason, you must re-submit your withholding, health insurance and tax-at-source if any of these had contained errors or omissions.

This method of substituting a previously filed return with a replacement has been available for filers since 1 January 2017. Note: if any corrections are made to filings dating back to before 1 January 2017, replacement returns must be filed also in that case.

Illustration: Your tax period is the month, and you want to make corrections to your 12/2016 employer's contributions in May 2018. The way to solve the problem is to file a replacement return, tax period 12/2016.

Illustration: The tax period of a limited company is the month, and its accounting year is 1 July 2016–30 June 2017. In October 2016, it has had €2,000 of withholding to pay. However, in May 2018 it is detected that the self-assessed return for October has indicated €2,500 as the amount withheld, meaning €500 too much. The way to correct the error is to file a replacement return for October 2016.

However, if the mistake is small, it may be corrected by a simplified process

If the excessive self-assessed tax or the unreported self-assessed tax is less than €500 per tax period and per tax, the amount is regarded as “low”.

When errors only involve a low amount, you can make the necessary corrections on your next tax return, i.e. the time when you should put things right, at the latest, is when you complete your tax return for the month after the month when you detected the error. However, despite the fact that the amount is low, you must correct the error even if you had nothing else to report.

You can make a correction in the simplified way even if you did not detect the error until after the end of the calendar year. You have the right to use the simplified process for as long as you otherwise continue to have the right to making corrections for the tax period concerned.

However, the simple correction method does not apply to old tax periods that ended prior to 1 January 2017.

Notice that the simple correction method for low amount errors does not apply to payroll information reported to the Incomes Register.

Illustration: You are an employer, and your tax period is the calendar month. In November 2018, you detect an error in the withholding figure on your October 2017 tax return. You had reported too much withholding: you actually withheld a smaller amount. There is no need to prepare a correction specifically for October 2017 because in this example, the amount is regarded as being “low”; rather, you can make the necessary correction to the total amounts by the general due date in December 2018 when filing your December return. Because you didn't notice the error until 2018, the following year, you also have to make a correction to your employer payroll report for 2017.

For more information on making corrections, see the 2019 guidance.

Read more: 

Correcting errors in a self-assessed tax return
Making corrections to mistakes on a tax return – official decision of the Tax Administration (only in Finnish, Verohallinnon päätös veroilmoituksessa olevan virheen korjaamisesta)

Give the reason for the correction

If you already filed your self-assessed taxes but you notice some errors and omissions, you must file a replacement return to put things right.

You must fill in the appropriate space to explain why a correction is being made to your employer's contributions:

Calculation error / entry error

Tick this reason as appropriate.

Change in legal praxis

Tick this as appropriate.

Guidance received during tax audit

Tick this as appropriate.

Error in interpretation of the law

Tick this if you had understood the rules incorrectly. This would be your reason for correction, for example, if you had first interpreted the law in one way and found out later that it must be interpreted in another way instead.


Because you can put smaller mistakes right by a simple process, it is enough if you enter a correction in a return for a future tax period. No replacement return is filed, and there's no need to specify the reason for the correction.

The Tax Administration imposes late-filing penalties for overdue returns

If you do not file a tax return by its deadline, or if you fail to make corrections to a filed tax return by the deadline date, you must pay a late-filing penalty. The penalty charges are specific for each sub-type of tax filed late. However, payroll withholding, the employer's health insurance contribution, and taxes at source are regarded as one single type.

Late filing of the first tax return for the period

If you file the return late, a penalty charge of €3 per day is imposed for the first 45 days of delay. The counting of days begins the next day after the due date, and continues up to the actual arrival date of the filing at the Tax Administration, with that day included. Reference to "days" means calendar days, i. e. weekends and holidays are included.

If the delay is less than 45 days or 45 days exactly, the amount of the tax filed late has no effect on the size of the charge. This way, you'd have to pay €135.00 if you were 45 days late in filing a return (45 days × €3). Because the charge does not depend on the tax owed, it may even be higher than it. To illustrate, let us say the tax is €50.00. If you were 45 days late, the charge imposed would be €135.00.

If 45 days have elapsed and you still haven't filed, two percent of the tax to be paid and filed late is added to the €135.00. However, the part of the charge linked to the tax owed is maximally €15,000, for each tax, and for each tax period.

Late penalties imposed on a replacement return

No penalty is charged if the replacement is filed within 45 days after the original due date. However, if it is filed later than that and it turns out that the tax to be paid has increased, there will be an added late-penalty charge on the tax.

Two percent of the tax to be paid and filed late is added.

No charge linked to the tax is imposed, if:

  • A new return, filed as a replacement, does not indicate an increase of the tax owed
  • A new return, filed as a replacement, indicates that the tax decreases

Read more:
Late-penalty charges on self-assessed taxes
Late filing and late payment relating to self-assessment